Troubling signs for current account and deficit levels
Containers are transported at the Laem Chabang deep-sea port in Chon Buri province on April 25, 2024. (Bangkok Post File Photo: Nutthawat Wichieanbut)
Thailand could be at risk of entering a "dual deficit" situation and facing longer-term baht weakness.Authorities should emphasise economic stability while strengthening the country's long-term economic resilience, according to Kiatnakin Phatra Financial Group (KKP).
In a post on his personal Facebook page, KKP chief economist Pipat Luengnaruemitchai suggested Thailand could be moving towards a "dual deficit" condition, driven by both current account and fiscal deficits. He warned the situation could affect Thailand's economic stability and contribute to longer-term baht depreciation.
"The risk of a dual deficit is reflected in several factors, particularly the country's trade balance. Although exports continue to record strong growth, imports have risen rapidly -- especially capital goods, energy and technology-related products -- pushing the trade deficit to record levels," he said.
